If you are like most individuals, you pay your insurance premiums every month with the assurance that it will be there to cover you if you are ever injured in an accident. When an accident occurs, filing an insurance claim is your first line of defense toward reimbursement for any damages you sustained. However, when you require it the most, your insurance may not be as helpful as you thought.
Dealing with insurance companies can feel like a bewildering labyrinth of requirements that sometimes results in dead ends. At DiBella Law, we take your situation personally and strive to get you the maximum settlement offer for your case. A knowledgeable Massachusetts personal injury lawyer will guide you through the process every step of the way to ensure you are not shortchanged.
An Overview of Insurance Settlement Offers
Accepting the first insurance settlement offer is rarely recommended when filing a claim. Insurance companies will generally begin with a low offer and may even offer a lump sum to close the claim out quickly. It is highly advisable to have an attorney look over any insurance offers you may receive.
Insurance companies often want to resolve claims as soon as possible. They will typically make a settlement offer early before you may know the extent of the injuries and damages you have suffered. However, once a settlement offer is accepted and signed, you waive all further rights to claims and legal action.
By doing this, insurance companies can ensure that they do not have to pay out higher amounts in the event that your injuries are more extensive or get worse. If you receive an offer that is below what your damages are worth, or the insurance company delays or acts in bad faith with your claim, hiring legal representation can protect your rights and ensure you get sufficient compensation.
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What to Do When you Receive a Settlement Offer from an Insurance Company
The first insurance settlement offer from an insurance company is typically guaranteed to be the lowest. Insurance companies are businesses that often try to protect their bottom line and pay the lowest amount of money to claimants. To best protect your interests, hire a personal injury lawyer to represent you and provide guidance on navigating insurance claims after an accident.
When providing information to insurance companies, it is important to be honest but conscientious in your conversations so you don’t reduce or lose your settlement offer. If you are working with a lawyer, allowing them to speak for you and negotiate with the insurance company can ensure you get the best results. This is especially beneficial if the insurance company provides you with a low or unreasonable offer.
Navigating the insurance settlement process can be confusing, time-consuming, and complex — and overwhelming if you try to do it on your own. Hire and talk with an attorney about the extent and value of your injuries and damages to determine the amount you are seeking to cover your expenses. Your lawyer will be able to discuss your options with you and provide counsel on what actions to take.
How a Lawyer Can Help You Negotiate a Fair Settlement
While insurance companies are businesses that are prepared to negotiate settlement offers, they also know that many people will not know how much their accident is worth. As such, most individuals will not make a counteroffer, and the insurance company will only end up paying a minimum amount in compensation. This is where a lawyer can help you negotiate your settlement offer.
Negotiation is an important part of the insurance settlement offer process. When you receive an offer from an insurance company, review it closely with your lawyer to see what they are offering you and how it compares to your damages. Your lawyer will thoroughly review the offer and investigate the details of your situation to determine the best strategy and counteroffer for your settlement.
One particular action your lawyer is likely to take when negotiating with insurance companies is to create and send them demand letters — signaling your intent to make a counteroffer for a higher settlement. Demand letters are used to outline in detail the specifics of an accident, the resulting injuries, and a counteroffer that aligns more closely with the actual value of the damages you sustained. Demand letters are particularly beneficial for communicating negotiations, giving notice to the insurance company, and providing evidence of both the inciting event and claim history in the event the matter is litigated.
We've offered crucial support and guidance to individuals who have suffered injuries, ensuring their financial and emotional well-being.
Tax Implications of Personal Injury Settlements
If you have received compensation for a personal injury claim, you may be asking if your settlement is taxable in Massachusetts. In Massachusetts, damages received are not considered taxable income and do not have to be reported on your federal or state taxes. However, there are some exceptions for when you may have to report settlement money on your taxes, which include:
- Medical deductions
- Emotional distress that was not a result of injury or illness
- Interest on settlement money that has been placed in a trust or had pre-judgment interest applied
- Punitive damages
- Lost wages, punitive damages, or interest from settlements in wrongful death claims
The guidelines for what does and does not need to be reported are the same for both federal and state taxes. While this makes filing your taxes easier, keeping track of reporting requirements can be complicated. Talk to your lawyer about what you need to do after receiving a settlement.
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Hire an Attorney to Receive Fair Treatment
Injuries from an accident can set you back financially and add even more stress to a stressful situation. DiBella Law Injury and Accident Lawyers are here to make sure you are not being taken advantage of by insurance companies and that the compensation you need for your medical expenses is readily available to you. Schedule a free case consultation with a personal injury attorney today and get the peace of mind that you will be fairly compensated.
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